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Friday, May 23, 2008

Pain at the pump leaves many with holiday at home

Travel agents said their business has been slow. Still, Virginia Beach is expecting more visitors this year than last.

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With Memorial Day weekend in the offing, Ruth Bailey is accustomed to seeing a heavy influx of members visiting AAA Mid-Atlantic in Roanoke for travel assistance and services.

But not this time around.

"We have been very slow," said Bailey, who works the front desk.

High gasoline prices are putting a brake on travel. But the news is mixed. Virginia Beach is expecting more visitors in 2008 than 2007, for instance, in spite of a 40 percent rise in oil prices this year.

During the next few days, Memorial Day weekend may offer a glimpse of what the travel season holds for restaurants, hotels and other services that profit from travel. It's when about 10 percent of Americans leave home for a long weekend getaway.

This Memorial Day weekend, AAA Mid-Atlantic predicts motor vehicle travel will fall 1 percent and air travel will fall nearly 8 percent compared with last year.

Bailey informally quizzes some of those who stop by AAA on where they are headed. Visiting family and friends seems to be the trip of choice, she said.

"While they are paying more for the gas, they are saving on the hotel and that sort of thing by going places where they already have accommodations," Bailey said.

In an affirmation of that trend, a Roanoke travel agent said her business is down.

"I'm not booking near what I booked last year," said Marti Spraker, owner of Adventure Travel. "It's been a rocky year so far. God only knows in which direction we're going to go in."

That said, many people are still traveling and finding deals, according to Spraker, who said her business is doing fine.

While she is arranging far fewer short, inexpensive trips, she is arranging more high-dollar outings. One client is taking about 16 people to Bermuda to celebrate his 60th wedding anniversary, she said.

Clients who are driving are choosing such venues as Virginia Beach; the Outer Banks, N.C.; Myrtle Beach, S.C.; and Gatlinburg, Tenn., she said. Those who go are in some cases staying four or five nights instead of a week, she said.

Spraker sounded optimistic. If anything, these times call for more leisure, not less, she said.

"I think most of us need a vacation," Spraker said.

Gas seems a sure bet to keep marching higher.

"We're going to blast past $4," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.

Prices may rise as high as $3.90 on a national basis by this weekend, he said. Prices are already above $4 a gallon at many stations around the country, and are averaging more than $4 in California, New York and Illinois, among other states.

Thursday's average price in the Roanoke metropolitan area was $3.74, shattering the old record -- set Sunday -- by 4 cents. Records have been broken more than 25 times since the run-up began in early March.

Virginia Beach, being close to many major population centers, is a major East Coast destination, drawing nearly 3 million overnight visitors annually.

About 5 percent of that crowd hails from the Roanoke-Lynchburg region. There's evidence that some will take that trip again this year and that they will have plenty of company.

"Right now the summer is shaping up pretty good in terms of advance reservations," said Jim Ricketts, who directs the Virginia Beach Convention and Visitors Bureau.

Gas prices have not risen so high to decimate short-distance travel.

"If gas prices really take off and are skyrocketing, we might have some issues," Ricketts said.

The Associated Press contributed to this report.

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